USD/JPY: offers extending below the support at 112.70 to 112.56 the low

Ross J Burland FXStreet

Currently, USD/JPY is trading at 112.61, down -0.21% on the day, having posted a daily high at 112.92 and low at 112.56.

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USD/JPY has started out in the Tokyo with offers to and below key support. USD/JPY has been struggling to hold onto rallies through the 113 handle where big offers are sighted where the range on Tuesday before the Tokyo open had been between USD/JPY range has been 112.66-113.19. There is scope for higher on a push through the 113 handle should big money get back involved as was witnessed in the prior Asian session with a big fund taking the spot all the way to 113.17.

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However, in the US session, the greenback slipped back on worries over Powell's catch up at the bookies for the Chair position at the Fed who is sighted as to more of a dove than Yellen or Warsh. After a deadbeat day on Wall Street in terms of data and impetus, not so much the record highs seen again in the S&P 500 where cheap money remains the key driver, markets now turn to Fed's Yellen's opening remarks at a banking conference in St. Louis. And we have the ADP & ISM data on Wednesday.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart maintains a neutral-to-bullish technical stance." Indicators continue heading nowhere around their mid-lines, but the price is developing well above bullish moving averages, with the 100 SMA now standing around 111.70," she added.

Valeria also notes that the pair still needs to accelerate through 113.25, where it topped last week, to be able to advance further, eyeing then a major static resistance at 114.40. "Still the pair can continue ranging ahead of US employment data to be released next Friday, usually a big market mover for the pair," Valeria concluded.

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Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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